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Strategic Management Principles and Concepts

   

Added on  2020-02-03

13 Pages3976 Words1289 Views
Leadership ManagementPolitical Science
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Strategic management :phase 1 andphase 21
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3PHASE 1- Strategic Analysis of the WRSX Group should include the following sections............31. The environment......................................................................................................................32. WRSX and industry strategic capabilities...............................................................................53. Strategic purpose......................................................................................................................64. Cultural and its impact on WRSX strategy..............................................................................65. Environmental..........................................................................................................................7Conclusion...................................................................................................................................7PHASE 2- STRATEGIC CHOICES ..............................................................................................8Business strategy .........................................................................................................................8Corporate strategy........................................................................................................................9International strategy...................................................................................................................9Innovation and entrepreneurship..................................................................................................9Mergers, acquisitions and alliances...........................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................122
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INTRODUCTIONIn order to succeed in the competitive environment it is required by the company to focuson analysing the internal and external environment of company so that they can easily assess theposition of company. Along with this, report also focuses on different phase that is 1 and 2 thatmainly focuses on analysing the strategic position of the company. For the present report theselected organisation is WRSX group leading global advertisement company. Strategic analysisof business environment mainly focuses on application of two different models that is VRIO andPESTEL that mainly engage in analysing the internal and external environment respectively. PHASE 1- STRATEGIC ANALYSIS OF THE WRSX GROUP SHOULD INCLUDE THE FOLLOWING SECTIONS1. The environmentStrategic analysis of business environment of WRSX group is performed using two toolsthat are VRIO and PESTEL. These two analysis frameworks are used for internal and externalanalysis respectively.The internal analysis for WRSX group is performed as follows:V: Valuable: The current resources which are under company’s control are classified asassets or liabilities. This decision regarding value of resources is made under thisquestion of the framework. When customer value of WRSX group is increased whileutilising these resources then, they are considered as valuable. It helps in making betterstrategic plans which will help in utilisation of these resources (Barney and Hesterly,2015).R: Rare: Often there are certain resources which are not available in plenty but can behighly useful for the company. Only selected organisations are capable to purchase racquire such resources. WRSX group doesn’t have any sort of rare resources. Hence, thecompany lacks chances of sustainable competitive advantage.I: Costly to imitate: Every company has its own unique processing methods. When othercompetitors cannot imitate resources, then these are classified as costly to imitate. Thecontributing conditions which classify resources as costly to imitate are ambiguity, socialcomplexity and historic conditions these have to be considered before certifying a3
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resource as costly to imitate (Grant, 2016). Some employees and strategies can beguarded under this category. WRSX’s international strategic plans have to be designedwith help of proper utilisation of these resources so that competition can be handledeffectively.O: Organised to capture value: Company cannot get any sort of profit or advantagewhen resources are not managed effectively. Hence, they must be organised for capturinggreat value. Policies and processes can be used for inculcating organised systems throughmanagement strategies (Yates, 2012). This will help WRSX to enhance its culture andinner potentials.Strategic external analysis for the group is performed using PESTEL framework which isevaluated ahead:P-Political: Influence of political policies and governmental actions on company’sfunctioning structure is political factor of external environment. Government functionswith revenue collection. Fiscal policy, trade tariffs, restrictions and several other reformscause an adverse effect on strategies and action plans of the company.E-Economical: Economy is basic requirement of very business organisation. Investmentdecisions are made according to changes in economic policies (Breja, Banwet and Iyer,2016). Performance of WRSX is directly affected when great changes are made ineconomic strategies. Income levels of consumers are also a part of economical factorinfluencing the company. Tax policies and foreign direct investments lie under thiscategory.S-Social: Cultural acceptance of a marketing strategy proposed by WRSX is essential.Social factors are made up of changes in demographics, cultural trends, populations,changes in taste and demands, trending consumer preferences, etc. These factors have tobe considered while devising strategies of company.T-Technological: Technology is advancing with great pace. The company must also usethese technological developments in its marketing and global communication strategies.It will enhance better coverage and improvements in its supply chain (Tidd and Bessant,2014). Research and development policies are formulated by government. If WRSX4
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